MPWMD BOARD MEETING--NOVEMBER 19, 2012--EXHIBIT 8D--MPWMD DRAFT FINDING OF APPROVAL, DATED NOVEMBER 2012

EXHIBIT 8-D

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

DRAFT

FINDINGS of APPROVAL

CONSIDER APPLICATION TO CREATE

SEPTEMBER RANCH WATER DISTRIBUTION SYSTEM Service area: APN 015-171-010 and -012; 015-361-013 and -014

Application #20110316SEP, Permit #M12-06-L4

Adopted by MPWMD Board at November ____, 2012 Public Hearing

Unless noted otherwise, all cited documents and materials are available for review at the MPWMD Office, 5 Harris Court, Building G, Monterey (Ryan Ranch

It is hereby found and determined as follows:

1. FINDING: September Ranch Partners, LLC, a California Limited Liability Company, is identified as the owner of property located at 676 Carmel Valley Road, Carmel Valley, which is the proposed location of an approved residential subdivision (“September Ranch”) consisting of 73 new market-rate residential lots, 22 new affordable housing lots, and one existing farm house/caretaker unit; sales office/guard house; a 20.2-acre existing Equestrian Facility with accessory structures; 536.4 acres of Common Open Space; 273.6 acres of Private Open Space and 6.9 acres of Open Space Reserved for future public facilities. The subject parcels (APNs 015-171-010 and -012; 015-361-013 and -014) comprise approximately 891 acres. Following several years of environmental review, the Monterey County Board of Supervisors approved the project on November 9, 2010, based in part on a Monterey County Superior Court determination of adequacy of the 2006 Final EIR, with the exception of water demand estimates, which were further reviewed in 2009 and 2010.

EVIDENCE: MPWMD Permit Application #20110316SEP site map and application materials dated March 16, 2011, including all attachments; Grant Deed recorded by the Monterey County Recorder on December 30, 1987 (Reel 2183, page 788, ID#78206) and on October 27, 2011 (Document ID#2011061569); Supplemental application information provided to MPWMD in July-November 2012, including Summary of September Ranch Aquifer Depositional Environment by Bierman HydroGeologic, dated July 22, 2012. Monterey County Board of Supervisors Resolution No. 10-312 dated November 9, 2010 (PC95062/PLN050001). Draft and Final Environmental Impact Report (EIR) for September Ranch Subdivision, SCH #1995083033 (2004); Draft and Final Recirculated Portion of Revised EIR (February and July 2006); Draft and Final Revised Water Demand Analysis (2009 and 2010); Kennedy/Jenks Consultants, Final Report, Project Specific Hydrogeologic Report, September Ranch Project, Carmel, CA 02/13/2006. Monterey County Superior Court Peremptory Writ of Mandate (Case #M82632 and #M82643), issued December 23, 2008.

2. FINDING: The September Ranch Project is within the area served by California American Water (Cal-Am), but Cal-Am does not currently have the ability to serve the project due to current restrictions on its water supply. Water will be provided by an existing main Well (known as “SR-1”) and a minimum of one new Well. Existing Wells A, B, and C will become monitoring Wells or recommended for destruction. Residential Cal-Am Meter #6258 and Commercial Cal-Am meter #6276 will be disconnected.

EVIDENCE: Permit application materials as specified in Finding #1; map of Cal-Am service area. MPWMD Permit #M12-06-L4, Conditions of Approval #29 and 30.

3. FINDING: A Water Well Construction Permit for Well SR-1 was issued by the Monterey County Health Department (MCHD) on September 5, 1990, and constructed immediately thereafter. It was tested during “dry season” conditions starting on September 6, 1990 to October 8, 1990. The September Ranch Water Distribution System (SRWDS) will be installed pursuant to the necessary water distribution system permits issued by the Monterey County Health Department (MCHD). SRWDS will provide water for the project; however, each lot of record must obtain an individual Water Permit from the Monterey Peninsula Water Management District (MPWMD) allowing connection to the system. Each individual Connection will be metered.

The SRWDS will be comprised of a primary Well (SR-1), back-up Well(s), water treatment facilities, water storage facilities, and water distribution and pumping facilities.

Water will be drawn from the September Ranch Aquifer, as described in the technical documents referenced in Finding #1. Total maximum pumping will not exceed 57.21 acre-feet per year (AFY). Each lot of record will maintain separate water meters to ensure compliance with Monterey County and MPWMD Permit parameters. Water will be treated prior to distribution utilizing a method that consumes the lowest amount of water feasible within the range of 0 to 10% loss rate. Water treatment alternatives will be reviewed and approved by the MCHD.

Storage tanks and facilities will be constructed to provide maximum daily demand while providing required flows and pressures. The proposed steel storage tanks will be constructed in accordance with American Water Works Association (AWWA) standards. Storage tanks and Well water will provide fire protection for the project.

System operation and maintenance will be performed under contract with Carmel Lahaina Utility Services Company or a comparable entity in the business of operating and maintaining similar systems.

EVIDENCE: MCHD Water Well Construction Permit #W5870; State Department of Water Resources Well Completion Report #360102; Permit application materials as specified in Finding #1; map of Cal-Am service area.

4. FINDING: Applicant has applied for a Permit to create the September Ranch Water Distribution System (SRWDS) as described in Findings #1, #2 and #3. The system will provide water only for the September Ranch Subdivision, with an estimated water production of 57.21 AFY to provide potable and irrigation water for domestic and landscape uses on the Parcels and uses as specified in Finding #1.

EVIDENCE: Permit application materials as specified in Finding #1, including water demand estimates.

5. FINDING: Based on District staff analysis of the engineering, hydrogeologic and environmental data provided in the application, 57.21 AFY has been set as the annual production limit for the subject WDS to meet the water needs for the Parcels and uses specified in Finding #1, including conveyance and treatment losses.

EVIDENCE: Permit application materials as specified in Finding #1, including technical and environmental review documents; Finding #17 of Monterey County Board of Supervisors Resolution No. 10-312, November 9, 2010. MPWMD Permit #M12-06-L4, Condition of Approval #3.

6. FINDING: The application to create the September Ranch WDS, along with supporting materials, is in accordance with District Rules 21 and 22.

EVIDENCE: Permit application materials as specified in Finding #1, including environmental, technical and water rights documentation.

Required Findings (MPWMD Rule 22-B)

7. FINDING: The approval of the Permit would not cause unnecessary duplication of water service with any existing system. The subject property is within the areas served by Cal-Am, but Cal-Am water is unavailable for new or intensified use due to existing limitations imposed by State Water Resources Control Board (SWRCB), the Monterey County Superior Court, and the California Public Utilities Commission (CPUC). The property also appears to benefit from overlying water rights to percolating groundwater from the September Ranch Aquifer as described in Finding #10. The proposed system will be limited to 99 Connections for the uses described in Finding #1. [Rule 22-B-1]

EVIDENCE: Map of “Cal-Am” service area; MPWMD Permit #M12-06-L2, Conditions of Approval #1 through #4. SWRCB Order 95-10 dated July 1995; SWRCB Cease and Desist Order WRO 2009-0060 dated October 2009; Seaside Basin Adjudication Final Decision issued by Superior Court dated March 2006; CPUC Decision 11-03-048 dated March 24, 2011. Water rights information submitted in application materials specified in Finding #1 (Section 4.3 of 2006 Recirculated Portion of Revised Draft EIR).

8. FINDING: The approval of the Permit would not result in water importation or exportation to or from the District, respectively. The referenced Parcels are located wholly within the MPWMD. [Rule 22-B-2]

EVIDENCE: MPWMD boundary location maps.

9. FINDING: Approval of the application would not result in significant adverse impacts to “Sensitive Environmental Receptors” (SER) as defined by MPWMD Rule 11, including the Carmel Valley Alluvial Aquifer (CVAA). No active Wells owned by other entities are located within 300 feet of the subject Well SR-1, and would not be adversely affected. [Rule 22-B-3 and Rule 22-C-5]

EVIDENCE: Permit Application materials as specified in Finding #1, including all cited environmental, technical, legal and regulatory documents. Sections 4.3.3 and 4.3.4 of 2006 Recirculated Portion of Revised Draft EIR and Final EIR. Monterey County Board of Supervisors Notice of Determination as a CEQA Lead Agency adopted November 9, 2010. MPWMD Notice of Determination as a CEQA Responsible Agency dated November ____, 2012, following public hearing held on November 19, 2012. See also Finding #21.

10. FINDING: The application adequately identifies the right of the September Ranch property owner to the source of water supply for the subdivision, and provides supporting verification in the 2006 Draft EIR. The proposed water source is the September Ranch Aquifer, which is described as semi-isolated from the Carmel Valley Alluvial Aquifer. The application and EIR identifies the claim of right to include overlying use from percolating groundwater as well as a potential riparian use. The EIR determines that the project would not adversely affect other water rights holders in Carmel Valley, including the CVAA, from exercising their rights. The Superior Court determined that the water rights discussion in the 2006 RDEIR was legally sufficient. [Rule 22-B-4]

EVIDENCE: Permit application and environmental documentation as specified in Finding #1, including Sections 4.3.1 and 4.3.2 of the 2006 Recirculated Portion of Revised Draft EIR and Final EIR. Monterey County Superior Court Peremptory Writ of Mandate (Case #M82632 and #M82643), issued December 23, 2008. Grant Deed showing ownership of property by applicant.

11. FINDING: The application demonstrates existence of a long-term reliable source of water supply for the proposed uses as described in Findings #1, and #4. The MPWMD staff concludes that the supply should be adequate to provide water during peak and extended dry season periods with the production limit of 57.21 AFY. The MCHD has also determined that supply is adequate to meet the Parcel needs. [Rule 22-B-5]

EVIDENCE: Hydrogeologic assessments, engineering analyses and Monterey County determinations in Permit Application materials provided in Finding #1, specifically Sections 4.3.3 and 4.3.4 of the 2006 Recirculated Portion of Revised Draft EIR and Final EIR. Monterey County Board of Supervisors Resolution No. 10-312 dated November 9, 2010 (PC95062/PLN050001).

12. FINDING: The source of supply is identified as the separate September Ranch Aquifer, which is described as semi-isolated from the CVAA. The cumulative effects of issuance of a WDS Permit for the September Ranch Subdivision would not be expected to result in significant adverse impacts to the source of supply or the species and habitats dependent on the source of supply. These impacts have been evaluated by the County of Monterey as the CEQA Lead Agency and reviewed by MPWMD as a Responsible Agency. [Rule 22-B-6]

EVIDENCE: Hydrogeologic assessment and environmental review documents included in Permit Application materials as specified in Finding #1 including Section 4.3 of 2006 Recirculated Portion of Revised Draft EIR and Final EIR. Monterey County Board of Supervisors Resolution No. 10-312 dated November 9, 2010 (PC95062/PLN050001). MPWMD Permit #M12-06-L4, Condition of Approval #3.

13. FINDING: The source of supply for the subject parcel is not derived from the Carmel Valley Alluvial Aquifer or the Monterey Peninsula Water Resource System. The source of supply, the semi-isolated September Ranch Aquifer (SRA), is unique in terms of the standard categories used by MPWMD for well-based WDS. The SRA has alluvial characteristics from a hydrogeologic perspective but is treated as percolating groundwater from a water rights perspective, as described in Finding #10. The source of supply has been determined to be a less than significant tributary to the source of supply for any other system. [Rule 22-B-7]

EVIDENCE: MPWMD map showing boundaries of project site and jurisdiction of SWRCB superimposed on Monterey County parcels; technical and environmental review documents submitted with Permit Application as specified in Finding #1. Water rights and hydrology reviewed in Section 4.3 of 2006 Recirculated Portion of Revised Draft EIR and Final EIR.

14. FINDING: MPWMD Permit #M12-06-L4 does not allow a permanent intertie to any other water distribution system. The proposed WDS will be limited to a physically and legally separate system and may not be connected to the Cal-Am system at any time unless written permission from MPWMD is obtained. Temporary water service could be provided by trucked-in water in a non-fire emergency such as system failure. However, emergency back-up supplies shall not be drawn from the Carmel River, Carmel Valley Alluvial Aquifer, and/or the Seaside Groundwater Basin. Fire-suppression within the SRWDS service area will be provided by well water and on-site storage tanks. In accordance with Monterey County Condition of Approval #59 (Resolution No. 10-312), the fire protection system will be permanently and immediately available. It is noted that MPWMD Rules allow a separate standby Cal-Am meter solely for emergency fire sprinklers in the ceiling of the applicable structures, pursuant to local fire codes, because the Parcels are within the Cal-Am service area. [Rule 22-B-8]

EVIDENCE: MPWMD Permit #M12-06-L4, Condition of Approval #13. Monterey County Board of Supervisors Resolution No. 10-312 dated November 9, 2010. MPWMD Rules and Regulations.

15. FINDING: A back-flow protection device to prevent contamination of the Cal-Am system is required, if deemed necessary by Cal-Am. [Rule 22-B-9]

EVIDENCE: Map of Cal-Am service area; MPWMD Permit #M12-06-L4, Condition of Approval #14.

Minimum Standards for Granting a Permit (MPWMD Rule 22-C)

16. FINDING: The application adequately identifies the Responsible Party as the owner specified in Finding #1. [Rule 22-C-1]

EVIDENCE: Permit application and Grant Deed specified in Finding #1.

17. FINDING: The application meets the definition of a “Multiple-Parcel Connection System” and will provide water for numerous uses; the water quality will comply with California Title 22 water quality standards as administered by County and State health authorities. [Rule 22-C-2]

EVIDENCE: Permit application materials specified in Finding #1. MPWMD Permit #M12-06-L4, Conditions of Approval #1, #2, #3, and #15; California Administrative Code, Title 22.

18. FINDING: The application identifies the location of the source of supply for water distribution system (water source and Well site). [Rule 22-C-3]

EVIDENCE: Permit application materials specified in Finding #1, including location map. MPWMD Permit #M12-06-L4, Condition of Approval #4.

19. FINDING: The approval of the application would not create an overdraft or increase an existing overdraft of a groundwater basin. As noted in Finding #14, in the event of system failure, emergency back-up supplies will not be drawn from the Carmel River, Carmel Valley Alluvial Aquifer, and/or the Seaside Groundwater Basin. [Rule 22-C-4]

EVIDENCE: Hydrogeologic assessment and environmental review documents included in Permit application materials specified in Finding #1; MPWMD Permit #M12-06-L4, Conditions of Approval #3 and #13.

20. FINDING: The approval of the application would not adversely affect the ability of existing systems to provide water to users due to conditions of approval due to conditions of approval by MPWMD and other entities that limit future water use to a reasonable and acceptable amount, based on certified environmental review documents. The property owner’s right to use of September Ranch Aquifer water has been documented. [Rule 22-C-5]

EVIDENCE: Hydrogeologic assessment and environmental review documents included in Permit Application materials specified in Finding #1. Water rights and hydrology reviewed in Section 4.3 of 2006 Recirculated Portion of Revised Draft EIR and Final EIR. MPWMD Permit #M12-06-L4, Condition of Approval #3. California Water Code.

Compliance with California Environmental Quality Act (CEQA)

21. FINDING: In the review of this application, MPWMD has followed those guidelines adopted by the State of California and published in the California Administrative Code, Title 14, Section 15000 et seq. Specifically, the MPWMD as a Responsible Agency under CEQA for this action has complied with Guidelines Section 15096, and relies on actions by the County of Monterey, the CEQA Lead Agency in this case. The MPWMD, as a Responsible Agency for this project, has considered the County of Monterey’s Notice of Determination filed on November 10, 2009 approving the September Ranch Project based on EIR documents prepared in 2004, 2006, 2009 and 2010 (listed in Finding #1 and below); Monterey County Board of Supervisors Resolution No. 10-312 approving Permit PC95062/PLN050001 (as amended); Mitigation Monitoring Table approved November 9, 2010; Conditions of Approval approved November 9, 2010. The MPWMD, as a Responsible Agency for this project, has also considered the Peremptory Writ of Mandate (Case #M82632 and #M82643), issued December 23, 2008 by the Monterey County Superior Court.

MPWMD Board members have been provided Compact Discs with copies of pertinent environmental documents related to the September Ranch Subdivision (SCH#1995083033), with emphasis on water issues, prior to the public hearing on the SRWDS. The documents include: Draft and Final EIR (2004), which was superseded by the 2006 version in relation to hydrology and other water issues; Draft and Final Recirculated Portions of EIR (February and July 2006); and Draft and Final Revised Water Demand Analysis (2009 and 2010). The MPWMD Board has reviewed the environmental information and relied on the information as part of its decision-making on this matter.

EVIDENCE: CEQA and CEQA Guidelines, Section 15096. Permit Application materials as specified in Finding #1, including all cited environmental, technical, legal and regulatory documents.

22. FINDING: Pursuant to CEQA Section 15091, the MPWMD Board finds that the project will not have a significant effect on the environment, based on the documentation cited in Finding #21. Mitigation measures are not made as conditions of approval by MPWMD for this action. The full record for the “September Ranch Subdivision Project” can be reviewed at the offices of the County of Monterey, 168 West Alisal Street, Salinas, CA. A CD with 2004, 2006, 2009 and 2010 environmental documents is available at the District office.

EVIDENCE: Findings and Evidence provided in Finding #21 above. MPWMD Notice of Determination for Approval of SRWDS as a Responsible Agency, issued November ___, 2012 following public hearing on November 19, 2012.

23. FINDING: Pursuant to CEQA Section 15093, a Statement of Overriding Considerations was not required to be adopted by the MPWMD Board for approval of the subject Permit.

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